The S&P 500, a stock market index that tracks the performance of America’s largest companies, reached a new record high on Friday. This surge was driven by the strong performance of technology stocks and increasing optimism about the economy. The index closed at 4,839.8, surpassing the previous record set in January 2022. This achievement signifies a recovery from the market downturn experienced two years ago, when concerns about inflation and economic response were prevalent.

Investors have regained confidence as inflation has eased and the threat of an economic downturn has diminished. This has led to a resurgence in stock market activity. The Dow Jones Industrial Average, which represents the overall economy, also reached a new record high last year, thanks to optimistic investors purchasing shares. On Friday, it rose by 1%. The Nasdaq, which lists many technology companies, experienced a surge of 1.7%, but it is still approximately 4% below its peak in 2021.

The new record high for the S&P 500 definitively marks the current period as a bull market, with share prices rising by 35% since the low point in October 2022. Investors are encouraged by the possibility that the US central bank will declare victory over inflation and potentially begin to reverse course later this year. This would result in lower borrowing costs and provide a boost to the economy, benefiting companies. Additionally, rate cuts would steer investors away from interest rate-dependent investments and towards stocks, further driving up prices.

The optimism in the stock market is also fueled by expectations of growth in the technology sector due to advancements in artificial intelligence. This positive sentiment is not limited to investors; the general public is also experiencing the benefits. Retirement and investment accounts are recovering, gas prices are decreasing, and price increases in other goods are easing. The University of Michigan’s monthly survey of consumer sentiment reported that confidence has reached its highest level since 2021, increasing by more than 21% compared to a year ago.

Overall, the recent surge in the S&P 500 to a record high reflects the market’s rebound from previous concerns about inflation and economic downturn. Investors are hopeful that the US central bank will take measures to support the economy, leading to lower borrowing costs and increased stock prices. The technology sector is also expected to experience growth, driven by advancements in artificial intelligence. This positive sentiment is not only felt by investors but also by the general public, as they witness improvements in their financial accounts and a decrease in certain prices.

Original news source: US stocks surge to record high as market rebounds (BBC)

🎧 Listen:

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📖 Vocabulary:

Group or Classroom Activities

Warm-up Activities:

– News Summary

Instructions: Have students read the article and write a short summary of the main points. They should focus on capturing the key information and presenting it in a concise and clear manner. After they finish, have them share their summaries with a partner or in a small group and discuss any differences or similarities.

– Opinion Poll

Instructions: Divide the class into pairs or small groups. Have them discuss and share their opinions on the following questions:
1. Do you think the recent surge in the stock market is sustainable? Why or why not?
2. How do you think advancements in artificial intelligence will impact the technology sector?
3. Are you personally experiencing any positive effects from the current state of the stock market? If so, how?

After the discussion, have each group present their opinions to the class and facilitate a class-wide discussion.

– Vocabulary Pictionary

Instructions: Write a list of key vocabulary words from the article on the board. Divide the class into teams. Give each team a vocabulary word and have them take turns drawing a visual representation of the word on the board, without using any letters or numbers. The other teams must try to guess the word based on the drawing. The team that guesses correctly gets a point. Continue until all the vocabulary words have been used.

– Pros and Cons

Instructions: Divide the class into two groups. Assign one group the task of listing the pros of the recent surge in the stock market, while the other group lists the cons. Give them a few minutes to brainstorm and then have each group present their lists to the class. Facilitate a class discussion where students can share their opinions and debate the different perspectives.

– Future Predictions

Instructions: Have students work individually or in pairs to make predictions about the future of the stock market based on the information in the article. They should consider factors such as inflation, economic conditions, and advancements in technology. After they finish, have students share their predictions with each other and discuss their reasoning. Encourage them to support their predictions with evidence from the article.

🤔 Comprehension Questions:

1. What factors contributed to the S&P 500 reaching a new record high?
2. How has the threat of an economic downturn impacted investor confidence?
3. How has the Dow Jones Industrial Average performed recently?
4. How does the Nasdaq’s current performance compare to its peak in 2021?
5. What does the new record high for the S&P 500 indicate about the current market period?
6. Why are investors encouraged by the possibility of the US central bank reversing course on inflation?
7. What is fueling optimism in the stock market, aside from investor sentiment?
8. How has the general public benefited from the recent surge in the stock market?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

The S&P 500, a stock (1)______ index that tracks the performance of America’s largest companies, reached a new record high on (2)______. This surge was driven by the strong performance of technology stocks and increasing optimism about the economy. The index closed at 4,839.8, surpassing the previous record set in (3)______ 2022. This achievement signifies a recovery from the market downturn experienced two years ago, when concerns about inflation and economic response were prevalent.

Investors have (4)______ confidence as inflation has eased and the threat of an economic downturn has diminished. This has led to a resurgence in stock market activity. The Dow Jones Industrial Average, which represents the overall economy, also reached a new record high last year, thanks to (5)______ investors purchasing shares. On Friday, it rose by 1%. The Nasdaq, which lists many technology companies, experienced a surge of 1.7%, but it is still approximately 4% below its peak in 2021.

The new record high for the S&P 500 definitively marks the current period as a bull market, with share prices rising by 35% since the low point in (6)______ 2022. Investors are encouraged by the possibility that the US (7)______ bank will declare (8)______ over inflation and potentially begin to reverse course later this year. This would result in lower borrowing costs and provide a boost to the (9)______, benefiting companies. Additionally, rate cuts would steer investors away from interest rate-dependent investments and towards stocks, further driving up prices.

The optimism in the stock market is also fueled by expectations of growth in the technology sector due to advancements in artificial intelligence. This positive sentiment is not (10)______ to investors; the general public is also experiencing the benefits. Retirement and investment (11)______ are recovering, gas prices are decr(12)______, and price increases in other goods are easing. The University of Michigan’s monthly survey of consumer sentiment reported that confidence has reached its highest level since 2021, increasing by more than 21% compared to a year ago.

Overall, the recent surge in the S&P 500 to a record high reflects the market’s rebound from previous concerns about (13)______ and (14)______ downturn. Investors are hopeful that the US central bank will take measures to support the economy, leading to lower borrowing costs and increased stock prices. The technology sector is also expected to (15)______ growth, driven by advancements in artificial intelligence. This positive (16)______ is not only felt by investors but also by the general public, as they witness improvements in their financial accounts and a decrease in certain prices.
Go to answers ⇩

💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What is a stock market index and why is it important?
2. How would you feel if you saw your retirement or investment accounts recovering?
3. Do you think the surge in the stock market is a good indicator of the overall economy? Why or why not?
4. What is your opinion on the role of the US central bank in supporting the economy?
5. How do you think advancements in artificial intelligence will impact the technology sector?
6. Do you like investing in the stock market? Why or why not?
7. How would you feel if you saw gas prices decreasing and price increases in other goods easing?
8. What is your opinion on the recent surge in the S&P 500? Do you think it will continue to rise or will there be a downturn?
9. How do you think lower borrowing costs would benefit companies and the overall economy?
10. What is your outlook on the future of the stock market? Are you optimistic or pessimistic? Why?
11. How do you think the general public benefits from improvements in the stock market?
12. Do you think the surge in technology stocks is sustainable? Why or why not?
13. What measures do you think the US central bank should take to support the economy?
14. How would you feel if you were heavily invested in interest rate-dependent investments and the US central bank announced rate cuts?
15. Do you think the recent surge in the stock market is a good time to invest? Why or why not?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. resurgence
2. optimism
3. surpassed
4. signifies
5. downturn
6. prevalent
7. inflation
8. definitive
9. resurgence
10. sentiment
11. advancements
12. artificial
13. easing
14. rebound
15. bullish

Meanings:
(A) A decline in economic activity or prosperity
(B) Characterized by rising share prices and general confidence in the market’s future performance
(C) A revival or increase in strength or occurrence
(D) Indicates or is a sign of a particular situation or fact
(E) Exceeded or went beyond
(F) A feeling or belief that something good will happen or be true
(G) Made by human skill or effort rather than occurring naturally
(H) Becoming less severe, intense, or strict
(I) The rate at which the general level of prices for goods and services is rising
(J) Widely existing or occurring
(K) Providing a final solution or conclusion that leaves no doubt
(L) A revival or increase in strength or occurrence
(M) The general feelings or attitudes of a group of people
(N) Developments or improvements in technology or knowledge
(O) A return to a better state after a period of difficulty or failure
Go to answers ⇩

🔡 Multiple Choice Questions:

1. What is the S&P 500?
(a) A technology company
(b) A stock market index
(c) A central bank
(d) An economic downturn

2. What drove the surge in the S&P 500?
(a) Decreasing gas prices
(b) Concerns about inflation
(c) Economic response
(d) Strong performance of technology stocks

3. When did the S&P 500 reach a new record high?
(a) January 2022
(b) October 2022
(c) Friday
(d) 2021

4. What is the Dow Jones Industrial Average?
(a) An index representing the overall economy
(b) A technology company
(c) A central bank
(d) An economic downturn

5. How much did the Dow Jones Industrial Average rise on Friday?
(a) 4%
(b) 35%
(c) 1%
(d) 1.7%

6. How does the new record high for the S&P 500 mark the current period?
(a) As a bull market
(b) As an economic downturn
(c) As a bear market
(d) As a technology boom

7. What are investors encouraged by?
(a) Increasing gas prices
(b) The possibility of the US central bank declaring victory over inflation
(c) Higher borrowing costs
(d) Interest rate-dependent investments

8. What is fueling optimism in the stock market?
(a) Decreasing gas prices
(b) Concerns about inflation
(c) Economic response
(d) Expectations of growth in the technology sector

Go to answers ⇩

🕵️ True or False Questions:

1. The index closed at 4,839.8, falling short of the previous record set in January 2022.
2. The S&P 500 reached a new record low on Friday.
3. The Dow Jones Industrial Average also reached a new record high last year.
4. Investors have regained confidence as inflation has eased and the threat of an economic downturn has diminished.
5. The market downturn experienced two years ago was due to concerns about inflation and economic response.
6. The Nasdaq experienced a decline of 1.7% on Friday and is currently about 4% above its peak in 2021.
7. The surge in the S&P 500 was driven by the weak performance of technology stocks.
8. The recent surge in the S&P 500 reflects the market’s rebound from previous concerns about inflation and economic downturn.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. What factors contributed to the S&P 500 reaching a new record high?
2. How have investors’ confidence and activity in the stock market changed recently?
3. What would lower borrowing costs and rate cuts mean for the economy and stock prices?
4. What is driving optimism in the stock market, particularly in the technology sector?
5. How has the general public been affected by the recent surge in the stock market?

✅ Answers

🤔✅ Comprehension Question Answers:

1. The factors that contributed to the S&P 500 reaching a new record high include the strong performance of technology stocks and increasing optimism about the economy.

2. The threat of an economic downturn has impacted investor confidence negatively. However, as inflation has eased and the threat of a downturn has diminished, investors have regained confidence.

3. The Dow Jones Industrial Average has reached a new record high recently, thanks to optimistic investors purchasing shares. On Friday, it rose by 1%.

4. The Nasdaq is currently approximately 4% below its peak in 2021.

5. The new record high for the S&P 500 indicates that the current period is a bull market, with share prices rising by 35% since the low point in October 2022.

6. Investors are encouraged by the possibility of the US central bank reversing course on inflation because it would result in lower borrowing costs and provide a boost to the economy, benefiting companies.

7. Aside from investor sentiment, optimism in the stock market is fueled by expectations of growth in the technology sector due to advancements in artificial intelligence.

8. The general public has benefited from the recent surge in the stock market as retirement and investment accounts are recovering, gas prices are decreasing, and price increases in other goods are easing.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) market
(2) Friday
(3) January
(4) regained
(5) optimistic
(6) October
(7) central
(8) victory
(9) economy
(10) limited
(11) accounts
(12) easing
(13) inflation
(14) economic
(15) experience
(16) sentiment
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. resurgence
Answer: (C) A revival or increase in strength or occurrence

2. optimism
Answer: (F) A feeling or belief that something good will happen or be true

3. surpassed
Answer: (E) Exceeded or went beyond

4. signifies
Answer: (D) Indicates or is a sign of a particular situation or fact

5. downturn
Answer: (A) A decline in economic activity or prosperity

6. prevalent
Answer: (J) Widely existing or occurring

7. inflation
Answer: (I) The rate at which the general level of prices for goods and services is rising

8. definitive
Answer: (K) Providing a final solution or conclusion that leaves no doubt

9. resurgence
Answer: (C) A revival or increase in strength or occurrence

10. sentiment
Answer: (M) The general feelings or attitudes of a group of people

11. advancements
Answer: (N) Developments or improvements in technology or knowledge

12. artificial
Answer: (G) Made by human skill or effort rather than occurring naturally

13. easing
Answer: (H) Becoming less severe, intense, or strict

14. rebound
Answer: (O) A return to a better state after a period of difficulty or failure

15. bullish
Answer: (B) Characterized by rising share prices and general confidence in the market’s future performance
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. What is the S&P 500?
Answer: (b) A stock market index

2. What drove the surge in the S&P 500?
Answer: (d) Strong performance of technology stocks

3. When did the S&P 500 reach a new record high?
Answer: (c) Friday

4. What is the Dow Jones Industrial Average?
Answer: (a) An index representing the overall economy

5. How much did the Dow Jones Industrial Average rise on Friday?
Answer: (c) 1%

6. How does the new record high for the S&P 500 mark the current period?
Answer: (a) As a bull market

7. What are investors encouraged by?
Answer: (b) The possibility of the US central bank declaring victory over inflation

8. What is fueling optimism in the stock market?
Answer: (d) Expectations of growth in the technology sector
Go back to questions ⇧

🕵️✅ True or False Answers:

1. The index closed at 4,839.8, falling short of the previous record set in January 2022. (Answer: False)
2. The S&P 500 reached a new record low on Friday. (Answer: False)
3. The Dow Jones Industrial Average also reached a new record high last year. (Answer: True)
4. Investors have regained confidence as inflation has eased and the threat of an economic downturn has diminished. (Answer: True)
5. The market downturn experienced two years ago was due to concerns about inflation and economic response. (Answer: True)
6. The Nasdaq experienced a decline of 1.7% on Friday and is currently about 4% above its peak in 2021. (Answer: False)
7. The surge in the S&P 500 was driven by the weak performance of technology stocks. (Answer: False)
8. The recent surge in the S&P 500 reflects the market’s rebound from previous concerns about inflation and economic downturn. (Answer: True)
Go back to questions ⇧